Deere & Company (DE)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -14,635,000 | -6,430,000 | -4,858,000 | 28,052,000 | 27,839,000 | 27,192,000 | 27,199,000 | 18,462,000 | 19,749,000 | 14,229,000 | 14,695,000 | 14,385,000 | 12,938,000 | 12,528,000 | 11,296,000 | 11,159,000 | 11,311,000 | 10,404,000 | 8,590,000 | 7,246,000 |
| Total assets | US$ in thousands | 103,119,000 | 107,320,000 | 107,320,000 | 107,841,000 | 107,841,000 | 105,628,000 | 105,628,000 | 101,371,000 | 101,371,000 | 104,087,000 | 104,087,000 | 103,397,000 | 103,397,000 | 98,347,000 | 91,620,000 | 91,620,000 | 90,030,000 | 90,030,000 | 86,817,000 | 84,099,000 |
| Operating ROA | -14.19% | -5.99% | -4.53% | 26.01% | 25.81% | 25.74% | 25.75% | 18.21% | 19.48% | 13.67% | 14.12% | 13.91% | 12.51% | 12.74% | 12.33% | 12.18% | 12.56% | 11.56% | 9.89% | 8.62% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-14,635,000K ÷ $103,119,000K
= -14.19%
Operating return on assets (operating ROA) is a key financial ratio that indicates a company's efficiency in generating profits from its assets used in operations. Looking at the historical data of Deere & Company's operating ROA from May 1, 2022, to January 31, 2025, we observe fluctuations in the ratio.
The trend in Deere & Company's operating ROA shows an improvement over the period initially, with a gradual increase from 8.62% on May 1, 2022, to a peak of 26.01% on July 31, 2024. This indicates the company was effectively utilizing its assets to generate operating profits during this time.
However, the operating ROA experienced a significant decline in the subsequent periods, dropping sharply to negative figures, with -14.19% on January 31, 2025. This decline suggests a decrease in the company's ability to generate profits from its operational assets.
The negative operating ROA in the last few periods may indicate inefficiencies in operations, such as higher operating expenses relative to the operating income generated. It could also signify challenges in managing and utilizing assets effectively to generate profits.
In conclusion, the fluctuating trend in Deere & Company's operating ROA highlights the importance of closely monitoring asset utilization and operational efficiency to sustain profitability and overall financial performance.
Peer comparison
Jan 31, 2025